Haven Power

Waddams proposes inactive customer auction as alternative to price cap

Waddams proposes inactive customer auction as alternative to price cap


Professor Catherine Waddams proposed on Wednesday 3 May an auction to supply the 55% of energy customers who have been on the more expensive tariffs for at least three years, as an alternative to planned price caps. In a blog for the UEA’s Centre for Competition Policy, Waddams argued this could represent a better way to ensure fairness while also retaining the benefits of competition. While auctions provide competition for the market itself rather than acting as a competitor within the market, they would still give firms an incentive to provide the best offer. In doing so, such auctions would be “less damaging to competition than most forms of price cap, and certainly less damaging than a price freeze.”

UEA Centre for Competition Policy